Russia-China fund seeks Chinese investors for Saudi Aramco IPO

Russia-China fund seeks Chinese investors for Saudi Aramco IPO

FILE PHOTO: An employee in a branded helmet is pictured at Saudi Aramco oil facility in Abqaiq, Saudi Arabia October 12, 2019. REUTERS/Maxim Shemetov/File Photo

MOSCOW (Reuters) – The Russia-China Investment Fund is working to attract Chinese investors for Saudi Aramco’s planned initial public offering, the head of Russia’s RDIF sovereign wealth fund said on Thursday.

Aramco kicked off its IPO on Sunday, announcing its intention to float on its domestic bourse in what could be the world’s biggest listing as the kingdom seeks to diversify its economy away from oil.

“…we don’t expect massive investment from Russia because Russia already has a fairly serious oil and gas sector presence in its economy, and we need to diversify the economy…” said Kirill Dmitriev, RDIF’s head.

“Nonetheless, we confirm that the Russia-China fund is working in this direction to attract a number of Chinese investors to the Aramco IPO,” he said.

The Russia-China Investment Fund (RCIF) is a private equity fund established jointly by RDIF and China Investment Corporation in October 2011 to stimulate the bilateral investment.

It was not immediately clear why RCIF is looking to attract investors to Aramco’s IPO.

Reporting by Darya Korsunskaya; Writing by Tom Balmforth; Editing by Edmund Blair and Mark Potter

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